The Tasmanian Government has extended indefinitely the state's moratorium on genetically modified crops and animals.

Tasmania is the only Australian state to have to a blanket ban on genetically modified organisms (GMOs).

The Government will keep exemptions for scientific trials of GM crops and has not ruled out lifting the ban in the future.

Deputy Premier Bryan Green says the Government wants to protect the reputation of the state's food and agricultural exports.

"The status that it gives our state when it comes to brand is so vitally important," he said.

"The government's view is that we should go forward with the moratorium so as to ensure that we give companies...the opportunity to market our fruit industry, the opportunity to market into destinations that are very, very conscious of the fact that genetically-modified free is important to them."

The issue has divided the agricultural sector, with the dairy and poppy industries keen to explore the potential benefits of GMOs.

GMOs were outlawed in Tasmania over a decade ago after genetically altered canola escaped from trial crops at secret sites around the state.

A review of the moratorium attracted 160 public submissions last year.

Mark Smith from Dairy Tas is disappointed by the decision to extend the ban.

He had hoped it would be a short extension with regular reviews.

"The way GM developments are occurring, there are opportunities out there," he said.

"We'd be looking for those opportunities to be developed in a way that didn't harm Tasmania's brand, but the work that's been done so far has shown that Tasmania hasn't got a lot of advantage out of that situation."

"I think the extension of the moratorium is as good as the day we invented sliced bread," he said.

"It gives us a great point of difference and the point of difference to the rest of the world is that we can apply something that the people are really looking for out there in the world."

Rex Williams from Tasmanian Organic Dynamic Producers is relieved and says the contamination risk for organic crops was too great.

"In Tasmania, being small has a whole lot of great advantages, but in this case being small is not particularly a good advantage because we're not very far away from each other," he said.

The Beekeepers Association's Lindsay Bourke says it is a good result for his members.

"All around the world we have been pushing our products as clean and green and the world knows that it is and they also know that it is GM-free," he said.

"We're the only state that has enough guts to stick out and maintain that and we've done it again..we'll continue to get our premium prices for all of our products, not only honey but for everything else."

The move has also been backed by the Greens' Kim Booth who says the escape of genetically modified canola crops was a disaster.

"The contaminated sites from the GE trials in the last century still exist, they're costing hundreds of thousands of dollars every year to monitor, and to try and get rid of those GE canola wildings," he said.

But the Liberals' Jeremy Rockcliff describes the indefinite ban as extreme.

"What Bryan Green's been pushed into by the Greens is a ban forever on this technology and with advancements in technology, in the dairy industry, in the poppy industry in particular, you can't turn your backs on those multi-million dollar industries."

Decision disappoints scientists

University of Tasmania professor says there is no credible evidence to suggest that genetically modified organisms are harmful.

Crop physiology professor Sergey Shabala says he is disappointed emotion seems to be clouding the evidence.

"Scientific evidences are absent to prove that the GM crops can really do much damage or be of concern," he said.

A group representing Australia's plant science industry has also criticised the government's decision.

Crop Life spokeswoman Jessica Lee says it is a blow for Tasmanian agriculture.

"It's disappointing to see a decision like this being made against the weight of scientific and economic evidence," she said.

"Good public policy is based on actual evidence, not speculation and without access to the latest technology Tasmanian farmers will miss out on all the environmental and economic benefits GM crops are already bringing to the mainland states and farmers across the globe."